PRC-1 · Chapter 9 · Question 7 of 100
A customer directly transferred funds into the business bank account. The business was unaware until they received the bank statement. How should this be treated to reconcile the balances?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Debited in the adjusted cash book.
Explanation
A direct credit increases the bank balance. Because it is a valid receipt that the business previously missed, the cash book must be updated by debiting it.
More Bank Reconciliations MCQs
- Q9Bank charges of Rs. 150 appeared in the bank statement but had not been recorded in the cash book. To update the records, the accountant…
- Q10An error made by the bank by incorrectly debiting the business account with Rs. 5,000 for another company's cheque should be corrected by:
- Q11A Bank Reconciliation Statement (BRS) is typically prepared by:
- Q12If it is found that the receipt side of the cash book has been under-casted by Rs. 1,000, how is this error corrected?
- Q13A cheque of Rs. 1,678 was issued to a supplier but mistakenly recorded in the cash book as Rs. 1,890. What is the correction required in…